Government to match VC investments in Indian chip startups under Semicon 2.0: ISM CEO

India's government will invest in approved chip startups under Semicon 2.0 on the same terms as venture funds. The Cabinet approved the program on July 15, 2026, with a budget of 1.27 trillion rupees; 12 manufacturing projects worth 1.64 trillion rupees were approved.

• Semicon 2.0 budget is 1.27 trillion rupees across six areas: design, equipment, fabs, packaging, R&D, talent
• 12 manufacturing projects worth 1.64 trillion rupees approved; three already produce in Sanand
• 24 design startups received support; 15 raised venture investment
• Indian chip companies raised $1.4 billion, including $701 million since 2025